Dealers benefit from OTC liquidity split, buy-siders claim

Shut off from foreign peers, US firms need dealers to access offshore liquidity


Buy-side firms in the US claim dealers stand to benefit from the splitting of over-the-counter derivatives markets into two pools of participants – US persons and non-US persons – as a by-product of Dodd-Frank Act rules on clearing and trading. That could hold back the all-to-all OTC market that is envisaged in both US and European rules, the firms say, and their suspicions may be deepened by revelations from European trading platforms that dealers have urged them not to open their doors to US p

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